ETH Bulls Look to End Six-Day Losing Streak on Staking Stats

Key Insights:

• ETH extended the losing streak to six sessions on Wednesday, falling 0.47% to end the day at $1,889.
• Staking statistics and the threat of more SEC regulation by enforcement weighed.
• The shorter-term technical indicators remain bearish, signaling a fall to sub-$1,850.

Ethereum (ETH) fell by 0.47% on Wednesday. Following a 0.73% loss on Tuesday, ETH ended the day at $1,889. ETH extended the losing streak to six sessions and ended the day at sub-$1,900 for the second consecutive session.

Ethereum Price Action

This morning, ETH was up 0.41% to $1,897. A range-bound start to the day saw ETH fall to an early low of $1,885 before rising to a high of $1,900.

Daily Chart

The Daily Chart showed ETH/USD sitting above the $1,895 – $1,865 support band, with the $1,900 psychological resistance level capping early gains.

However, ETH/USD currently sits above the 50-day ($1,873) and 200-day ($1,773) EMAs, signaling bullish momentum over the near and long term. Notably, the 50-day EMA widened further from the 200-day EMA and reflected bullish momentum.

Looking at the 14-Daily RSI, the 51.00 reading signaled a bullish outlook, aligned with the 50-day and 200-day EMAs. Significantly, the RSI supports a breakout from $1,900 to target $1,950 and the $2,075 – $2,105 resistance band.

4-Hourly Chart

Looking at the 4-Hourly Chart, the ETH/USD faces strong resistance at the $1,900 psychological level. ETH/USD sits below the $2,075 – $2,105 resistance band and the 50-day EMA ($1,911). However, ETH remains above 200-day EMA ($1,884), sending bearish near-term but bullish longer-term price signals.

Significantly, the 50-day EMA narrowed to the 200-day EMA, signaling a fall through the upper level of the $1,895 – $1,865 support band and the 200-day EMA ($1.884) to bring sub-$1,850 into view.

However, a move through the 50-day EMA ($1,911) would bring $1,950 and the $2,075 – $2,105 resistance band into play.

The 14-4H RSI reading of 44.63 sends bearish ETH price signals, with selling pressure outweighing buying pressure. Significantly, the bearish RSI supports a fall through the upper level of the $1,895 – $1,865 support band and the 200-day EMA ($1,884) to bring sub-$1,850 into view.

SEC Plan to Continue Regulation by Enforcement Weighed

It was another busy session on Wednesday, with SEC Chair Gary Gensler in the spotlight. In the aftermath of the SEC v Ripple Court rulings, the SEC Chair was on Capitol Hill seeking more funding at the Senate Subcommittee hearing on the fiscal year 2024 budget to tackle the Wild West.

Approval for more funding would enable SEC to continue its regulation by enforcement mantra that leaves the US digital asset space in never-ending regulatory uncertainty.

The SEC has remained silent on plans for a settlement in the SEC v Ripple case or intentions to appeal the Judge Torres ruling on the Programmatic Sales of XRP.

US lawmaker silence was also disappointing for investors hoping for the SEC v Ripple Court

ruling to incentivize bipartisan legislation to deliver a clear and robust regulatory framework.

Uncertainty surrounding the spot BTC ETF also tested buyer appetite. On Wednesday, news hit the wires of NASDAQ u-turning on plans to offer crypto custody services, citing US regulatory risks. The announcement may reduce the likelihood of the SEC approving one, some, or all the ETF applications.

Spot Ethereum ETF applications would likely follow the first wave of BTC ETFs approvals.

Staking Statistics Support an End to the Six-Day Losing Streak

According to CryptoQuant, staking inflows surged from 35,904 ETH on Tuesday to 125,696 on Wednesday. Significantly, staking inflows broke through the 100,000 threshold for the first time since July 13, a bullish price signal.

The overnight withdrawal profile was bearish, with principal withdrawals at above-normal levels. However, withdrawal projections for the morning session are relatively bullish. Projections show ETH withdrawals will sit at normal withdrawal levels this morning.

On Wednesday, the net ETH staking balance stood at a 29,860 ETH surplus ($56.75 million), up 13.02% over 24 hours. Deposits totaled 40,330 versus withdrawals of 10,470 ETH.

According to TokenUnlocks, total pending withdrawals stood at 32,910 ETH, equivalent to approximately $62.46 million. Notably, the staking APR stood at 5.76%, up 3.97% over 24 hours. The rise in staking APR and surge in staking inflows are ETH price positive.